CLA-2-87:OT:RR:NC:N1:101
Jun Hu, President
JH Global Services, Inc.
52 Pelham Davis Circle
Greenville, SC 29615-5751
RE: The tariff classification and country of origin of Low Speed Vehicles (LSV) assembled in the
United States
Dear Mr. Hu,
In your letter dated June 8, 2010, you requested a tariff classification ruling.
The item under consideration has been identified as a Low Speed Vehicle (LSV) assembled in the United States from U.S. parts and parts imported from China, Canada, Puerto Rico and Taiwan.
Imported parts include –
Chassis, Bodies and Rear Ends from China
Speed Controller from Puerto Rico
AC Motor and Controller from Canada
Tires from Taiwan
U.S. parts include –
Steering Column
Steering Wheel
Front Bumper
Rear Bumper
Front Roof Support
Rear Roof Support
Rear Seating
Battery
Roof
Front Seating
Seat Belts
Windshield
Reflectors
Speedometer
Odometer
Motor
Battery Charger
Battery Meter
Any Custom-Ordered Parts (e.g., painting, windshield wipers, solar panels)
You state in your ruling request that several operations occur in the United States to transform the various parts into a finished vehicle:
Installing DOT approved tires and rims
Installing functional front bumper
Installing functional rear bumper
Installing steering column and steering wheel
Installing front and rear roof support
Installing front and rear seats with DOT approved seat belts
Installing batteries
Installing roof
Installing DOT approved windshield
Installing DOT approved reflectors
Front wheel lineup alignment
Installing windshield wipers, if state required
Installing odometer and speedometer, if state required
Programming the vehicle controller for 20-25 mph LSV speed
Affixing a VIN plate, in addition to a vehicle specification plate
Various testing of installed systems
Final prepping and packing for shipping or customer pickup
The applicable classification subheading for the fully-assembled Low Speed Vehicle (LSV) will be 8703.10.5060, Harmonized Tariff schedule of the United States (HTSUS), which provides for “Motor cars and other motor vehicles principally designed for the transport of persons … : … golf carts and similar vehicles: Other: Other.”
Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 134.1(d) defines the ultimate purchaser as generally the last person in the U.S. who will receive the article in the form in which it was imported. 19 CFR 134.1(d)(1) states that if an imported article will be used in manufacture, the manufacturer may be the ultimate purchaser if he subjects the imported article to a process which results in a substantial transformation of the article. The case of U.S. v. Gibson-Thomsen Co., Inc., 27 C.C.P.A. 267 (C.A.D. 98) (1940), provides that an article used in manufacture which results in an article having a name, character or use differing from that of the constituent article will be considered substantially transformed and that the manufacturer or processor will be considered the ultimate purchaser of the constituent materials.
In this case, the imported Chassis, Bodies, Rear Ends, Speed Controllers, AC Motors and Controllers and Tires are substantially transformed as a result of the U.S. processing and, therefore, the U.S. manufacturer is the ultimate purchaser of the imported Chassis, Bodies, Rear Ends, Speed Controllers, AC Motors and Controllers and Tires. The country of origin of the fully-assembled Low Speed Vehicle (LSV), for U.S. Customs purposes, is the United States.
As to whether the Low Speed Vehicle (LSV) may be marked with “Made in the USA” or similar words denoting U.S. origin, that is an issue under the authority of the Federal Trade Commission (FTC). We suggest that you contact the FTC Division of Enforcement, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580-0001 on the propriety of proposed markings indicating that an article is made in the U.S.
Duty rates are provided for your convenience and are subject to change. The text of the most recent Harmonized Tariff Schedule of the United States and the accompanying duty rates are provided on the World Wide Web at http://ww.usitc.gov /tata/hts/.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Richard Laman at 646-733-3017.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division